Home affordability is a hot topic. Right now Colorado’s Affordability Index is very strong.

An Affordability index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent down payment and 25 percent of gross income devoted to mortgage principal and interest payments. Here is the National Association of Realtors take on housing prices. “2012 will clearly go down as a record year for favorable housing affordability conditions, and a great year for buyers who could get a mortgage. NAR’s National Housing Affordability Index stood at 198.2 in November, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power; recordkeeping began in 1970.”

Here is the link to the entire article from the National Association of Realtors”


Here is the practical application: We are in a rare window of opportunity. We are likely coming towards the end of one of the best times to purchase you may see in your lifetime.
The effect interest rates have on affordability is significant and the window of opportunity is still open if you miss it, in my opinion you will have missed a historic opportunity. Whether you are purchasing a home as a primary residence or as an investment the numbers make incredible sense right now

Copyright © 2013 Dave Kupernik Real Estate Broker, All rights reserved.

Read the rest of this newsletter here: 24k Newsletter Denver Area Real Estate Market